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Lesser Antilles Lines: The Island of San Huberto (B)
Hild, Matthias Case QA-0641 / Published November 9, 2004 / 2 pages.
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Product Overview

The case is a continuation of Lesser Antilles Lines (UVA-QA-0355) which describes the price competition between two duopolistic shipping companies facing inelastic demand for cargo volume. Customers have inelastic and time-sensitive demand, restricting their strategic possibilities. The fictional case introduces additional pricing instruments to this setup. The duopolists can now offer price guarantees and include most-favored-customer clauses and last-look provisions in their contracts. The case is linked to a web-based simulation exercise that lets students explore the effects of these contractual instruments in a duopoly.

  • Overview

    The case is a continuation of Lesser Antilles Lines (UVA-QA-0355) which describes the price competition between two duopolistic shipping companies facing inelastic demand for cargo volume. Customers have inelastic and time-sensitive demand, restricting their strategic possibilities. The fictional case introduces additional pricing instruments to this setup. The duopolists can now offer price guarantees and include most-favored-customer clauses and last-look provisions in their contracts. The case is linked to a web-based simulation exercise that lets students explore the effects of these contractual instruments in a duopoly.

  • Learning Objectives